There's a lot of the middle ground between "median income" and "$10 million per year". There are stories in the web about people who struggle to make ends meet on $400-500k income, because of "lifestyle inflation": big house, expensive clothes, eating out in fancy restaurants, exotic vacations - those people would pay tons of VAT tax :)
For people who actually make $10 million per year, and do not pay much in VAT, there are still better ways to tax them than the income tax (which they can avoid with some tax optimization scheme), like property taxes, or capital gain tax.
For people who actually make $10 million per year, and do not pay much in VAT, there are still better ways to tax them than the income tax (which they can avoid with some tax optimization scheme), like property taxes, or capital gain tax.